Via Renewables(US:VIA)2026-02-27 14:30Financial Data and Key Metrics Changes - In Q4 2025, revenue grew 30% year-over-year to $119 million, marking the eighth consecutive quarter of 30% or more year-over-year growth [9][28] - The annual run rate revenue for Q4 2025 was $476 million, also reflecting a 30% year-over-year increase [28] - Adjusted EBITDA margin improved to negative 6%, the narrowest loss in the company's history, compared to negative 10% in Q4 2024 [34] Business Line Data and Key Metrics Changes - The number of customers on the platform increased to 821, a 23% year-over-year growth, with organic customer growth at 9% [10][29] - The acquisition of Downtowner added 94 new customers, expanding the platform's reach [10][29] - Revenue per customer reached the highest level in Via's history, with a 31% year-over-year growth in customers generating over $1 million in annual run rate revenue [29] Market Data and Key Metrics Changes - Platform revenue in the U.S. increased by 39% year-over-year, indicating strong growth in the domestic market [28] - The serviceable addressable market is estimated at $82 billion, with Via capturing just over 1% of this market [21][22] Company Strategy and Development Direction - The company aims to leverage its public company status for strategic acquisitions, with a focus on targeted and selective opportunities like Downtowner [14][16] - Product innovation is a key growth driver, with over 50 new products and major features released in 2025, significantly aided by AI [16][17] - The company is committed to achieving a long-term adjusted EBITDA margin of 20%-25% [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue delivering strong performance, emphasizing the significant opportunity in transforming public transit and local government efficiency [37] - The company expects revenue for Q1 2026 to be between $123.3 million and $123.8 million, representing 25%-25.5% year-over-year growth [35] - For the full year 2026, revenue guidance is set between $542.9 million and $545.1 million, with an expected adjusted EBITDA margin improvement [35] Other Important Information - The company achieved a record gross revenue retention rate of 98%, attributed to the mission-critical nature of its platform and the ability to sell more products to existing customers [11][29] - The company is focused on building AI-powered solutions that extend beyond public transit, responding to customer needs in various municipal operations [26][100] Q&A Session Summary Question: How much services come into Via's business model? - Management clarified that the services-only contracts are anomalies and emphasized the focus on software-enabled solutions as critical to scaling the business [41][42] Question: What does the RFP pipeline look like for 2026? - Management noted a consistent year-over-year RFP pipeline with a larger percentage of opportunities available compared to the previous year, driven by the expansion of solutions [48][50] Question: How does the company view gross retention and its impact on 2026 guidance? - Management indicated that high gross revenue retention is due to the platform's mission-criticality and the ability to sell more products, which strengthens customer relationships [105]